Switzerland

Roche doesn’t need to risk prudent M&A reputation

15 Jul 2013

The pharma giant is eyeing a $20 billion plus bid for Alexion, Reuters says. The U.S. biotech group’s lucrative line in rare “orphan” drugs could help Roche diversify after recent setbacks. But the mooted price isn’t cheap, and orphan drugs’ blessed protected status may not last.

Grohe should help rid Germany of locust curse

12 Jul 2013

The private equity-owned bathroom fixtures maker is mulling an IPO. Possible buyers are circling. Grohe was declared a victim of “locust investors” by a German politician a decade ago. Today it is stronger than ever, even though its mooted valuation looks a bit optimistic.

Basel leverage fudge puts heat on Wall Street

26 Jun 2013

The Swiss-based global regulator has hit at U.S. banks more than euro peers in its attempt to harmonise leverage rules. Basel’s proposals stop American lenders offsetting derivatives. But by trying to steer a middle path it actually makes international convergence less likely.

Marc Rich leaves empire at the peak of its powers

26 Jun 2013

The commodities king and former fugitive, who spawned Glencore Xstrata, has died in Switzerland aged 78. Rich’s willingness to trade with almost anyone made him billions, but often posed moral questions. And though he created an industry, its best years may be in the past.

SAP fixes e-commerce weakness at hubristic price

6 Jun 2013

Europe’s largest software company is swallowing Hybris, a Swiss maker of business-to-consumer e-commerce platforms. The deal makes strategic sense, as it addresses a big weakness in SAP’s product line. But it may require overwhelming arrogance to defend the price.

Could UBS resurrect partnership investment banking?

4 Jun 2013

Knight Vinke’s push for UBS to split wealth management from investment banking is too ambitious to happen anytime soon. But the idea of selling the investment bank to its staff has merit in theory. To work in practice it would require time, luck and possibly more capital.

Agnellis brace for Fiat-Chrysler merger endgame

3 Jun 2013

The Agnellis want to maintain their 30 percent stake in Fiat after the Italian carmaker has merged with Chrysler. The 2 bln euro sale of their stake in Swiss inspection group SGS gives them ample means to take part in a potential capital hike after the deal.

Switzerland succumbs to plea bargainer’s dilemma

30 May 2013

When you’re guilty, it’s best to cooperate in return for a light sentence. That thinking has led the Swiss government to make a deal with the Americans about tax evasion. Banks keep client secrecy and have a year to settle. Fines will turn their past errors into history.

Glencore should just name Ivan Glasenberg chairman

16 May 2013

The miner’s shareholders have handed Chairman John Bond his walking papers. Best practice dictates his permanent replacement be a strong outsider. This precludes tapping Glasenberg, the miner’s CEO and biggest shareholder. But a dual mandate would better reflect corporate reality.

UBS is ill-judged target for shareholder activism

2 May 2013

Knight Vinke wants the Swiss bank to split investment banking and wealth management. It’s odd timing from an activist whose record includes a failed tilt at HSBC. No one would create a bank like UBS from scratch. But a breakup isn’t viable. UBS’s current strategy looks right.

New UBS is starting to work

30 Apr 2013

The first full quarter of the new strategy answered the critics. The Swiss bank shone in trading and capital markets financing, returning to its traditional strength in equities. Investment bank stability helped wealth management too. But risks remain and turnaround is priced in.

European banks turn tables on Wall Street

24 Apr 2013

Credit Suisse and Barclays had a good first quarter in investment banking, holding up well against Wall St peers. Barclays still lags its Swiss rival in restructuring the business. But Credit Suisse is showing how it is possible to reshape, resize and still make good returns.

ABB takes a shine to solar

22 Apr 2013

The Swiss engineer is buying Nasdaq-listed Power-One for $1 bln. The solar glut has spelt financial misery for many, although ABB says its target is in a sweet spot. ABB is being unusually acquisitive for a European blue-chip. It needs to show investors its M&A strategy makes sense.

Orcel bonanza shows how far banks must go on pay

14 Mar 2013

UBS stumped up $26 mln to prise investment-bank head Andrea Orcel from BAML - making a mockery of so-called retention packages. Switzerland may be clamping down on high pay. But it takes only one firm to perpetuate the financial sector’s compensation problem.

Swiss may show the way on pay

4 Mar 2013

Voters in Switzerland have given huge support to curbs on remuneration. State meddling in pay may be clumsy, but private excess is a policy problem when governments have to justify spending cuts. Boards were asking for it. And the legislation rightly shifts power to shareholders.

European insurer dividend angst looks overdone

21 Feb 2013

Allianz and AXA have respectively held and increased their dividends, a day after UK rival RSA cut its own. While all insurers are battling low investment yields, the larger players have more room for manoeuvre. The same logic should apply to the payout of fellow big beast Aviva.

Novartis pay-for-silence retreat is first of many

19 Feb 2013

In the face of public fury, the Swiss drugmaker has cancelled $78 mln in non-compete payments to its retiring chairman. Daniel Vasella’s case was extreme: ultra-high reward for essentially no action in an egalitarian land. But it sets a strong precedent for activists everywhere.

Swiss first to test-drive mortgage capital buffer

14 Feb 2013

Switzerland has ordered its banks to hold more capital against mortgage loans, in order to limit the surge of property prices. If it works, the UK and others might be emboldened to follow suit. But the opposition of some Swiss stakeholders could also make them steer clear.

Credit Suisse has bad news for debt wannabes

7 Feb 2013

The Swiss bank’s fourth-quarter results should alarm any bank not in the top tier of fixed-income trading. A quarter ago, Credit Suisse’s smaller size appeared no great barrier to revenue. After a precipitous 28 pct fall, second-tier rivals may fear it was a one-off.

UBS lays foundations for investment-bank rebuild

5 Feb 2013

The Swiss bank has moved on from Libor woes, slashed risk and is buying back debt. It’s now in the vanguard on capital. True, the investment banking unit’s 60 pct payout ratio needs a chop, and a new bond-based bonus plan confuses matters. But the repair job is on track.